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Fears of social unrest as eurozone jobless rate soars

ELEANOR HALL: There's more evidence today that the eurozone crisis is deepening.

The unemployment rate for the single currency bloc has reached an all time high, and Europe watchers are warning about increasing social unrest.

Joining us now is finance reporter David Taylor.

David, just how dire is the employment picture in Europe?

DAVID TAYLOR: Well Eleanor, eurozone unemployment rate - 12 per cent. It's the highest level ever for the 17 member currency bloc. More than 19 million people in the eurozone are now jobless. Spain and Greece suffering the worst among the block, with unemployment around 26 per cent, Greece youth unemployment near 60 per cent.

So look, being out of a job is one thing but the authorities are mainly concerned about losing a grip on the crisis altogether and the evidence does suggest it's going to get worse before it gets better.

In Greece, international creditors have demanded the government earmark 25,000 public sector workers for future dismissal and that's causing concerns about social unrest. The anxiety's already quite obvious on the streets of Athens. This first gentleman you're about to hear from has just had to have his pay cut by 40 per cent.

MAN 1: Had to move back to my parentsí home, unfortunately and I'm 38 years old.

MAN 2: It's hard for me to find a job right now. Even if I have a degree, it's difficult.

MAN 3: Go away from Greece. It's the only thought I have this moment.

ELEANOR HALL: Some voices from the streets of Athens overnight.

So David, to Australia now, what does the latest trade data show about the stability of our economy?

DAVID TAYLOR: Eleanor, a bit of a surprise this morning. The Bureau of Statistics says Australia's trade balance narrowed to $178 million in February. It was a $1.2 billion deficit in January. Now export revenue rose 3 per cent. That's due mainly to higher prices though, not higher volumes, while imports fell 1 per cent and Eleanor that could indicate slowing domestic demand.

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